Tax and donation forms
UK tax relief
If you pay tax in the UK, all gifts qualify for basic rate income tax relief through the Gift Aid Scheme. All you need to do is to complete the Gift Aid Declaration on the donation form. This enables Newnham to recover tax relief over and above your actual donation equal to the basic rate of tax. So if you give a donation of £1,000 to Newnham it is worth £1,250. Alternatively you could look at it by saying ‘If I want to give £1,000 in total then I need only give a donation of £800’. The rest will be recovered through Gift Aid. If you are a higher rate tax payer then you may also claim relief equal to the higher rate of tax through your income tax return – this relief goes to you as the taxpayer rather than to the College.
Give As You Earn
If you are employed in the UK, your employer may operate the Give as You Earn Scheme. Giving through your payroll has the advantage that payments are made out of your gross income before tax is taken – a significant saving to you. Useful information is available at www.cafonline.org.
Company Matched Funding
It is also worth asking whether your company operates a Matched Funding Scheme as this can double the value of your gift to Newnham.
Gift of shares
UK taxpayers – both individuals and companies – can get income tax relief on gifts to charities such as Newnham. You can claim tax relief equal to the market value of the shares on the day you make the gift plus associated costs such as brokers fees. The relief is set against your Income Tax for that year, at the top rate of tax on your Self-Assessment or Corporation Tax return. An additional benefit is that you will not have to pay Capital Gains Tax on any increase in the value of the shares since you brought them as the transfer to a charity is not deemed to have realised any gain.
Donors from overseas can in many cases donate in a tax-efficient manner; see below for details on how to give if you live in Europe, the US or Canada.
If you are living in a participating country (which includes Belgium, France, Netherlands, Germany, Poland and the UK) please note that we are now registered with Transational Giving Europe. For further details see www.transnationalgiving.eu/tge.
You can give to Newnham through Cambridge in America (Cam) which is a 501(c)(3) tax-exempt organisation that funds grants benefiting the University and Colleges. It is recognised by the US Internal Revenue Service so you can claim your donation against tax. Further information can be found at www.cantab.org.
Those who pay taxes in Canada can give direct to Newnham. We will then arrange for an official tax receipt to be issued by the University of Cambridge.